Source: Real Estate Management-Joseph DeCARLO

To increase income and enhance the value of their property, all property owners and managers must select tenants who are good credit risks and who will coexist peacefully with other tenants.  But the selection issues facing each type of rental property are quite different.

Residential Landlords: are subject to a number of laws prohibiting housing discrimination.  These laws hold property owners and managers responsible for conscious or unconscious discrimination based on race, religion, color, family status, sex, national origin, handicap. Anti discrimination laws affect ALL aspects of the selection process, from advertising and marketing to the charging of security deposits.  There are risks that residential owners and managers cannot afford to ignore; therefore, they must develop policies and procedures to ensure that every applicant is treated fairly.

Commercial Property: owners and managers are subject to fewer legal requirements, but their financial risks are more serious than those of residential landlords.  The commercial tenant selection process therefore focuses on attracting and retaining creditworthy and financially stable tenants, whose businesses are compatible with those of fellow Tenants.

Tip from Crossett Real Estate Services

If you are presently a Landlord, or an Investor, have you considered management services?  Experience has shown that properties with a management plan in place, attract stable Tenants, increase the value of the original investment.

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This web page was updated on 06/29/2011.